Get ready: Regulators are looking hard at cybersecurity of third-party vendors

Feb 24

What’s voluntary today is going to be required tomorrow

As mortgage lenders and servicers try to shore up their own systems against data security breaches, a new regulatory focus on the security practices of third-party vendors could be even more daunting.

A panel at the Mortgage Bankers Association’s Mortgage Servicing conference examined the data security threats servicers need to address, and one glaring area of weakness was these vendor relationships. Specifically, the panel pointed to the guidelines from the New York Department of Financial Services on this issue that are voluntary now, but are likely — even highly likely — to be required in the near future.

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